eToro Review UK – Best Trading Platform?

The first thing you need to do if you want to start investing in crypto in the UK is to find a good trading platform. And that’s not such an easy task.

The thing is, many popular crypto trading platforms are aimed at US investors. Also, there’s no market variety for traders who want to succeed in the crypto world.

Fortunately, a trading platform that will most likely meet all your needs does exist. Whether you’re a newcomer or a seasoned trader, eToro will help you achieve your goals.

In our opinion, eToro is the best place to buy crypto. So, without further ado, let’s see what eToro is all about.

What is eToro? 

eToro is one of the most popular online crypto platforms available to everyone including UK investors.

One of the best things about eToro is that it’s a licensed and well-regulated platform. But it’s also very easy to use, so it’s also suitable for beginners.

On eToro, you can open an account and buy crypto within minutes. Additionally, the platform offers a variety of trading options, extensive markets, and useful features.

eToro Review

Besides being reliable and user-friendly, eToro is also one of the most affordable platforms. 

The minimum deposit for US and UK investors on eToro is $10. That’s great for beginners and investors who want to start small.

And as an online broker, eToro provides access to all kinds of assets like stocks, ETFs, and so on.

Plus, you’ll have a bunch of excellent features and social trading tools at your disposal.

For example, a CopyTrader tool can come in handy if you don’t feel confident to make your own decisions – it allows you to mirror the moves of more experienced traders. But we’ll take a more detailed look at this feature further down.

After all, there are many other important factors that make eToro a great trading platform.

Is eToro Safe?

Let’s start with the most important question: is eToro a safe platform?

The short answer is: absolutely. In fact, safety is one of the biggest advantages of using eToro.

For starters, eToro operates within the guidelines of multiple regulators including the FCA in the UK. It’s also regulated by CySec (Cyprus Securities and Exchange Commission), MiFID (Markets In Financial Instruments Directive), and ASIC (Australian Securities and Investments Commission).

Furthermore, eToro holds all payments in segregated bank accounts. It always uses tier-1 banks, which are considered exceptionally secure. So, you don’t have to worry about your funds if you choose to open an account on eToro.

eToro UK Laws

As we’ve just mentioned, eToro is fully regulated in the UK. Therefore, you’ll need to follow the steps that any other licensed broker requires.

For example, before you start investing, eToro will have to verify your identity. That’s not a complicated process – you’ll just have to upload a few documents to prove your identity and residential address. It’s all a part of the standard KYC (Know Your Customer) process.

eToro Fees

On the eToro platform, there’s no commission, but there are some fees you should be aware of.

Firstly, you need to factor in a conversion fee.

eToro only allows trades with US dollars, so if you want to deposit funds in another currency like GBP, eToro will charge you a conversion fee.

Conversion fees normally range from 50 pips to 250 pips. If you’re not familiar with the term, a pip refers to the percentage in point and it’s equal to 1% of one basis point, or about £0.0001.

Another fee you should be aware of is a withdrawal fee.

Withdrawal fees work in a slightly simpler way – the platform charges a flat £5 fee for every withdrawal. Also, you must have at least £30 on your account if you want to make a withdrawal.

Also, eToro requires a minimum amount of £50 for any position you hold. And if you’re inactive for 12 months (you don’t log in to your account), a £10 inactivity fee applies.

The last thing you need to factor in is the possibility of extra fees. For example, if you perform any CFD or “contract for difference” trades, you’ll probably be charged a fee. That depends on the value of a particular CDF asset though.

All in all, despite the fees we just mentioned, eToro is quite affordable, especially if you compare it to some other options. Plus, if you reach a higher account tier, you’ll be eligible for fee discounts, on top of some nice extra features.

eToro Overnight Fees 

Just like many other stock trading apps and brokers, eToro charges overnight fees.

Overnight fees usually apply if you hold various assets or financial instruments. However, eToro charges overnight fees only for holding CFDs or margin trades overnight, and only during the week. This doesn’t include cryptocurrencies, however – they are charged over the weekend too.

eToro Exchange Rate

The eToro platform is based on US dollars, but you can easily convert your currency. Just don’t forget about conversion fees.

If you want to avoid conversion fees, you can convert GBP or any other currency to USD first and then put your money to eToro.

You should also keep in mind that the exchange rate is increased by 0.5% every time you make a currency conversion (from euros or pounds to dollars).

If you want to profit from your investments in the long run, you should convert your money to USD first. In a way, that’s a disadvantage of using eToro.

Is eToro Free? 

eToro has a reputation for being the most affordable crypto platform. But is eToro really free?

Well, when you take into account the withdrawal and conversion fees, that’s not entirely true. But compared to many other brokers and platforms, eToro is actually a cheaper option.

eToro Leverage

And what about the eToro leverage?

In essence, leverage is a risk level you’re allowed to use if you want to make a trade with a stock or another asset.

When it comes to using leverage on eToro, you’re allowed to do it when you open a trade, but you can also decrease the leverage available at any time. And leverage limits are dictated by the ESMA or European Securities and Markets Authority.

These limits include x30 for any major currency pairs, x20 for any non-major currency pairs (and gold and major indices), x10 for any commodities other than gold or non-major equity indices, and x5 for ETFs and CFD stocks.

This leverage flexibility allows ambitious traders to make big trades and see better returns. So, this is also one of eToro’s benefits.

eToro Market Hours

Cryptocurrency markets are open 24 hours a day. But eToro also has market hours based on the asset. So, when you want to trade something, you need to check market hours for that particular asset.

eToro market hours are the following:

  • Stocks and ETFs – Monday 01:00 to Friday 09:30
  • Commodities – Sunday 16:00 to Friday 14:30, but hours may vary
  • Indices – Sunday 16:00 top Friday 14:15, but hours may vary
  • Currencies – Sunday 15:05 to Friday 14:30, but hours may vary

You can check more detailed info about market opening and closing times and daily breaks on the eToro website.

What Can You Trade at eToro?

Another benefit of the eToro platform is a variety of trading options. Compared to many other brokers, eToro’s selection is quite impressive.

Let’s take a look at the 8 different trading options on eToro:

eToro Stocks 

If you’re interested in regular stocks, you can easily find them on eToro. You can trade through the London Stock Exchange (LSE). However, eToro is not yet approved in the US for investing stocks on the NYSE.

eToro Forex (Currencies) 

eToro also supports Forex currency trading. Therefore, you can make trades on Forex instruments. For example, you can trade on the USD or GBP.

eToro Crypto 

When it comes to crypto trading options, eToro is an absolute winner. Besides being able to trade crypto 24/7, you can trade with US markets.

If you already have some experience, you can do this on eToro safely and easily, and you can benefit a lot in the end, especially if you don’t mind a little risk.

eToro Indices 

eToro also provides indices trading. It offers USDOLLAR Index, ChinaA50 Index, and more.

eToro ETFs

On eToro, you can also place trades with ETFs as well as exchange-traded funds.

eToro Commodities 

Another option that eToro provides is trading commodities. You can trade oil, gold, silver, and so on.

If you have enough experience, you can also access additional markets focused on commodities like platinum, palladium, and natural gas.

eToro Dividends

Lastly, eToro allows you to trade dividends. That means you can potentially witness regular returns.

Dividends include stocks that entail cash payments from companies. Investors are paid directly every year or quarter (depending on the contract).

You can also turn to simple stock exchanges and trading actions. There’s a variety of options to choose from, regardless of your level of experience.

Other Features on eToro

As if trading variety isn’t enough, eToro also offers a bunch of extra features.

These advanced features can only improve your trading experience.

CopyTrader

As we mentioned earlier, eToro has excellent social trading tools.

And one of the most iconic features on eToro is CopyTrader. With this advanced tool, you can find and follow experienced traders and mirror their trading activity.

The CopyTrader tool is perfect for beginners who are still learning how to make a good trade.

Expert Advice

eToro has a large community of millions of traders and investing experts. Fortunately, you can ask these experts for advice at any time. You can ask them to analyze your strategy or see what they have to say about the future of the market.

If you’re a crypto beginner, eToro is a perfect place to get started. It will provide you with the knowledge needed to get around in the world of trading.

Besides educational materials, you’ll get access to analyst ratings and price targets for a wide selection of assets. Unfortunately, most of them are related to US stock, and that might be a disadvantage for UK investors. 

eToro App

eToro is also popular among traders for its convenient, user-friendly app. It’s available both on Android and iOS devices.

The eToro app is ideal for people who want to manage their portfolios on the go. You can check your trading portfolio and markets anytime, anywhere.

You can also connect with fellow members and receive real-time market updates.

eToro Support

eToro is a fantastic trading platform in terms of support too.

The eToro customer support is available in various languages including English, German, Spanish, French, and Italian.

You can also contact eToro by e-mail, and get a quick response in case of any issues.

In addition, there’s the eToro Live Chat, so you can also get in touch with the eToro team right away. The live chat agents usually respond in less than 5 minutes.

Final Thoughts

All things considered, eToro is an excellent trading platform, both for newbies and seasoned traders.

Since it’s well-regulated, eToro is one of the safest places to invest in crypto. It also provides useful tools, advanced features, and social trading options.

With eToro, you can be a part of a large network of traders and experts from all over the world. And if you’re just starting out, you can learn quite a lot from them.

Team

Our UK-based team writes articles to help beginners understand the world of cryptocurrency. We are firm believers that Blockchain technology has great application in our future.

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